Recourse factoring agreements can help trucking companies improve their cash flow. Contact Porter Freight Funding to learn more about our factoring services!
Invoice factoring offers a variety of benefits, such as improving your cash flow for fuel costs, insurance expense, truck payments, driver pay and allowing your fleet to take on more business. Partnering with a factoring company will also provide back-office support that manages the billing and collections process for your loads.
Factoring companies also provide assistance if a debtor fails to pay an invoice. While the specific terms of your agreement may vary between companies, a recourse freight factoring agreement is an affordable way to improve cash flow and receive assistance if a debtor fails to complete payment.
What Is Recourse Factoring?
If your trucking company has a recourse factoring agreement, you’re responsible for buying back all unpaid invoices after a pre-determined period which is typically 60 or 90 days after the invoice date.
With a recourse factoring program, the carrier takes the credit risk on their customers. This allows the factoring company to provide a more reduced pricing option for the carrier which will be more affordable and improve cash flow.
Choosing a recourse factoring company is an ideal option if you have an established relationship with your customers and there are no payment issues. Factoring companies can also perform credit checks on all current and prospective customers to provide further protection.
Why Is Recourse Factoring for Trucking Important?
Recourse invoice factoring with Porter Freight Funding offers many benefits, such as:
- Free credit analysis for all your current and prospective customers.
- Enhances quick cash flow.
- Reduced factoring fee.
- Flat rate for 90-days as opposed to 60-days offered by most competitors.
- Same-day funding available.
- Access to our vetted network of industry partners which can assist with compliance, insurance, fuel and dispatching.
How Does Recourse Factoring Work?
From the time Porter Freight Funding processes and submits the load to your customer, we will provide collection efforts to better ensure payments from your customer. If no payment is received after 90 days, the carrier will repurchase the invoice.
The entire team at Porter Freight Funding will work with you to find solutions that help you cover the cost of any unpaid invoices. You can also ensure financial success by doing business with brokers with a history of repaying their debts and good credit scores.
Apply for a Factoring Quote From Porter Freight Funding Today
Browse competitive recourse factoring plans from Porter Freight Funding today. Apply for a quote online or contact us at 205-397-0934 to learn more about our recourse factoring services. We look forward to helping trucking businesses of any size achieve consistent cash flow for smoother operations!